New iPhone 3GS on June 19, 2009: upgrade nightmare

On 06.09.09, In iPhone, by Rehman

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We now know that there is a new iPhone3G S handset coming on June 19 2009, and already people have started to complain. The handset itself does not offer the huge update that had been rumored, but we do get more speed and battery performance. The problem for most will be the upgrade nightmare.

The Washington Post explains that for those who already own an iphone 3G will want to upgrade to the iPhone 3G S, but it may not be as simple as that. When owners of the original iPhone upgraded to the 3G model last year they were offered the full subsidized $199 and $299 prices, this will not be the same this year.

For current owners of an iPhone 3G who are just one year into their two-year contract will have to pay $399 and $499 for the upgrade. The reason for this is that AT&T subsidizes the handset, if you only pay for one year of that contract, then it will eat into the profit for AT&T. Therefore, the carrier has to put the cost back into the new phone.

This is not only the case in the U.S.; we wrote an article yesterday, if you want to get a new iphone 3G on the O2 network in the UK, you would then have to pay to end your contract. My brother and cousin still have 6 months left of their 18-month contract, so they will have to pay six months of their remaining contract. Their contract is almost £45 per month, so they will have to pay £270 to end the contract, as well as a further £175.19 to begin a new 18-month contract.